Oil Up Again, Settles Above $79

MARK WILLIAMS

Oil prices pushed higher for a second straight day on Tuesday even though the dollar strengthened and fresh economic data gave mixed signals on whether demand for oil will increase.

Benchmark crude for December delivery rose 24 cents to settle at $79.14 a barrel in afternoon trading on the New York Mercantile Exchange.

The euro dropped back below $1.49 on Tuesday after banking officials in Europe and the U.S. voiced support for the dollar.

A falling dollar has helped drive oil prices after crude bottomed at $32 a barrel nearly a year ago. Because crude is traded in dollars, an investor can trade euros for dollars and then buy oil for a relative bargain.

At the same time, industrial production for October rose less than expected, suggesting that the economic recovery — and oil demand — will continue to be bumpy.

Even with Monday's strong gain, oil has traded in a range of $75 to $82 for the past several weeks.